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This guide explores key statistical concepts such as variation, deviation scores, and correlation. We begin with defining what variation is and how to visualize it within a dataset. The discussion includes the significance of deviation scores, sum of squares (SS), variance, and standard deviation, illustrating their calculations and interpretations. The role of Z-scores in standardizing data points is explained, along with their use in calculating correlation coefficients. Lastly, we provide formulas for correlation analysis, enhancing prediction capabilities between related variables.
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Variation • What is it? • What does it look like in a data set?
Deviation score • Measure the distance of each point from the mean
Sum of Squares (SS) • What is SS? • When is SS large? When is SS small?
Variance and Standard Deviation • Variance is Sum of Squares divided by N-1 Hard to interpret—still in “squared deviation” units • Standard deviation is the square root of the variance • Gives a measure of deviation in the units of the original observations
Z-scores • Z-scores always have a mean of 0 and standard deviation of 1 • Z-scores make it easier to understand each data point (What does a z-score of 0.2 mean? What about -1.2?) • Z-scores enable us to calculate correlation coefficients.
Correlation Calculation • Similar to how we calculate variation, but consider the deviation of variables from each other rather than from their mean. • Z-score product formula:
What does Zx ∙Zy mean? • As an example, think of Zxand Zy as scores for an individual on two different tests. • What if Zx and Zy are both high? • What if Zx and Zy are both low? • What if they have no relation to each other? • We do this for every pair of points, add them up, and then divide by N to calculate rxy.
Two more formulas (these get you the same rxy) • Z-score difference formula • Raw score formula
What correlation tells you • Correlation tells us how closely related two variables are. • Also, correlation can be used for prediction • If the correlation between math and reading scores is .67, then if a math score for a student is 1 standard deviation above the mean, then we predict her reading score will be .67 above from the mean.
Back to our hands data—Let’s calculate… • Mean for estimated and mean for actual • Standard deviation for both sets of data • Z-scores for each data point • Zx ∙Zyfor each pair of data points • rxy